More choice and lower costs when booking
airline tickets: the Commission advocates more competition in airline ticket
distribution

The European Commission adopted today a proposal to
simplify and modernise the two-decade-old rules for computerised reservation
systems (CRS). These systems are used by travel agents to book airline tickets
on behalf of their customers. The revised rules will allow CRSs and subscribing
travel agents to expand their offer and better compete in the airline
distribution market.

'More competition in this market means lower distribution costs and airlines
offering more travel options via the CRSs', said Commission Vice-President
Jacques Barrot in charge of transport. 'Consumers who use the services of a
travel agent for their airline bookings will enjoy an increased offer while
still being protected against any abuse or discrimination'.

Computerised reservation
systems[1] provide their
subscribers with up-to-date information about the availability of flight tickets
and fares. They permit travel agents to find flights, compare prices and make
immediate confirmed reservations on behalf of their customers.

The revision of the Code of Conduct for computerised reservation systems will
bring more competition in the field of airline ticket distribution by reducing
booking fees and pushing airlines to offer more travel options via the CRSs. The
revised rules will also ensure that all booking channels compete on a level
playing field, again for the benefit of consumers.

The revised Code of Conduct introduces pricing freedom into the CRS market.
Unlike today, CRSs and airlines will be free to negotiate the booking fees
charged by the reservation systems and the information content provided by the
airlines. More competition will contribute to higher efficiency in the sector in
terms of price and service quality.

At the same time, the revised Code maintains safeguards to protect against
competitive abuse by airlines that own or control CRSs. It contains provisions
to ensure an unbiased presentation of travel options in the CRS displays as well
as the display of 'all-inclusive' air fares. The Code also provides for the
protection of personal data.The Commission's proposal and its impact
assessment report are published on the following website: